Intraco share prices drop 5% despite deal to supply gas from Bhola to Dhaka
The share prices of Intraco Refueling Station Limited witnessed a decline of some 5% on Monday (22 May) at the Dhaka Stock Exchange (DSE), despite the company's recently announced agreement to transport gas from Bhola to Dhaka.
The agreement was published this morning, highlighting the company's efforts to expand its business.
During the trading session, the last trade price of Intraco shares stood at Tk39, reflecting a 4.91% drop compared to the previous closing price.
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Despite this decline, the news of the company's business expansion attracted investors' attention, securing its position as the second-highest turnover stock at the DSE.
The total turnover value of its shares reached Tk29.37 crore.
According to the agreement, Intraco will transport surplus gas from Bhola's gas fields to industries in Dhaka and Gazipur, from September this year.
The company has signed a 10-year contract with Sundarban Gas Company Limited, a state-owned gas distribution company responsible for gas distribution in Khulna divisional and Bhola.
Initially, Intraco will compress 5 million cubic feet (mmcf) of gas per day from Bhola's gas fields and deliver it to consumers via cascade cylinders transported by trucks.
The company plans to increase the compressed volume to 25mmcf per day in the future.
Under the terms of the agreement, industries will be required to pay Tk47.60 per unit of gas (CM), which is higher than the current rate of Tk30 per unit for industrial gas.
Intraco Refueling Station Limited was selected for this project under the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act 2010, a special act for the power and energy sector.
Meanwhile, the three gas fields in Bhola possess a production capacity of approximately 200mmcf.
However, the current production ranges between 80mmcf and 85mmcf, leaving around 120mmcf of surplus capacity unutilised in the nine wells of the Shahbazpur, Bhola, and Ilisha gas fields.
